UNDERSTANDING YOUR
BUSINESS MODEL &
DEVELOPING STRATEGY
CHAPTER 4
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley, 2011. ©
Attributes of Winning Strategies
Cheaper
Faster
Better
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley, 2011. ©
Competitive Advantage: The People
Values
Selection
Structure
Founders need to create a culture and align the the employees
they select with the values and structure of the company
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley, 2011. ©
Entry Strategy
Benchmark
Devise Initial Market Test
Create a Platform
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley, 2011. ©
Growth Strategies
Product Franchising
mix
expansion
Geographic
expansion
Drivers of Growth
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley, 2011. ©
Benefits of Franchising

Replicability


New sources of revenue


Established and proven methods
Royalties and fees from franchisees
New capital funds growth
Franchising works best with service businesses that are easy to
replicate. Be sure to monitor franchisees to maintain brand purity
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley, 2011. ©
Product Mix

Tangents and adjacencies
 What

Spread current costs
 New

makes sense with current offerings?
products  revenues more than costs
Maintain same distribution channels
Build on the base that was already created from existing products.
Share resources, relationships and channels with current lines?
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley, 2011. ©
Geo Expansion Considerations

Customers
Go where they are
 Mimic proven success strategies


Vendors
Can you use the same vendors?
 Any new costs? Leverage volume for better pricing


Distribution
Same channels?
 Leverage volume

Bygrave & Zacharakis, Entrepreneurship, New York: Wiley, 2011. ©